We consider that the over-capacity of seismic vessels has almost disappeared in the summer 2012. This is starting to translate into higher prices. PGS, the only pure maritime seismic operator, is the company with the biggest leverage in this regard. Its valuation ratios are about 15% lower than the historical average level, and still well below the ratios observed in the cycle recovery phase. The risk level is above average for the Energy sector.
This morning, PGS reported sharply improved results for 2012 that met expectations. Guidance for 2013 was unchanged. The share valuation is in line with its historical average, but PGS still looks undemandingly valued for the scenario envisaging a cyclical upswing. PLUS-R rating confirmed.
PGS this morning reported a sharp increase in results, confirming our investment thesis. The group has once again raised its 2012 guidance. While within the historical average, the group’s valuation is still low if one allows for the theory of a cyclical recovery. PLUS-R rating confirmed.
This morning, PGS posted greatly improved results, confirming our investment recommendation. PGS explained its 2012 guidance, recently revised upwards, in more detail. The valuation is now at its historical average, but still low if we take the view that a cycle recovery phase is now under way. PLUS-R rating confirmed.
This morning, PGS posted results ahead of expectations. The group confirmed that supply and demand were in balance again, holding out the prospect of a price rise in H2. It has raised its 2012 Ebitda target. The valuation is now at its historical average. PLUS-R rating confirmed.
Operating results published yesterday by PGS were better than expected. Commercial activity was high. The future prospects indicated by the company confirm the likely scenario of tension between supply and demand from 2012 onwards; price rises are therefore likely.
We expect the current overcapacity of seismic vessels to be absorbed in 2012. This should result in higher prices in one year’s time. PGS, the only pure marine seismic operator, would be the main beneficiary. Its valuation ratios are low, in both absolute and relative terms. The risk level is above the sector average. We are introducing this share with a PLUS-R code.